Hi Bobby,
Thanks for the explanation. Had a good look at Jenna's chart, and interesting to see how she drew the 4 lines. I can see the rationale for the $57 and the $45 1/2 lines, but less so the rationale for the $52 and $47 13/16 line, other than they probably represent the top and bottom body of the black candlestick just before the Wednesday's long white day (Fed's rate cut).
Yes, I can see why $57 is the "pivot". Interestingly, it is also where the 2 double bottoms in November are, and close to the 20ema line. It'll be interesting to see whether there'll be a failed test should $57 be reached after the lurking buy stops are filled at this price.
Unfortunately at this time I don't have charting capabilities that allow exact readings of prices like Jenna's. However, based on Vic123, the top is say, $71, and the bottom is, say $45, that is, 26 points. At $57, it is up 12 points, or 12/26 = 46% Fibonacci retracement. Wouldn't this make $57 pivot a high risk trade? I guess it is OK for daytrading, but for swing trades maybe it better to wait for a stronger confirmation? |
